Business and Legislation https://ojs.b-k.ge/index.php/bk <p>The international scientific-analytical journal <strong>"Business and Legislation"</strong> has been published since 2004. It systematically provides readers with articles prepared by professionals on all fields of business, marketing, management, tax, customs, accounting, auditing and economic profiling, as well as on a wide range of legislation.</p> <p><strong>"Business and Legislation"</strong> has been peer-reviewed and refereed since 2008. It is recognized and cooperates with all higher education institutions of Georgia, has relations with many foreign universities and international organizations.</p> <p>The review of the material to be published is carried out in accordance with the ethical norms established for review and in accordance with the best practices of publication.</p> <p>Since 2014, the magazine has been published entirely in electronic format. It is located in the digital library of the National Library of the Parliament of Georgia in "Iverieli", has been assigned an International Standard Serial Number (ISSN), a Digital Object Identifier (DOI) and is indexed in the International Search Database.</p> <p><strong>Online ISSN: 2960-9801</strong></p> <p><strong>Print ISSN: 1987-6041</strong></p> <p><strong>DOI: https://doi.org/10.52340/bal</strong></p> <p> </p> <p><strong>Periodicity: </strong>published twice a year - until the beginning of July and the end of December. Maybe there will be an additional special issue.</p> საქართველოს აუდიტორთა, ბუღალტერთა და ფინანსურ მენეჯერთა ფედერაცია, საინფორმაციო-ანალიტიკური სააგენტო „ივერიონი“ en-US Business and Legislation 1987-6041 Spatial planning and problems of sustainable development of rural areas in Georgia (conceptual-methodological approach) https://ojs.b-k.ge/index.php/bk/article/view/910 <p>The article discusses the modern problems of the development of rural areas of Georgia. All countries have different natural-industrial, economic and social spheres of development, labor traditions, sectoral structures, etc. features and trends. Theoretical understanding of these and other problems, especially determining specific directions of their development in the future, is a very difficult task. Especially in Georgia, whose territory includes a unique natural, demographic, economic, social, historical and cultural potential, which in modern conditions should be studied and evaluated using appropriate methodological approaches.</p> <p>The paper analyzes the results of the complex processes of economic transformation in Georgia during the transitional period, the causes of new challenges. In particular, how the material and technical base and organizational and managerial mechanism of agriculture were destroyed, what caused the economic and social spheres to fall out of the unified process of development, the strengthening of migration processes, the formation of small family farms as the main market entities in rural areas, the deepening of soil degradation, the shortage of qualified personnel, the sharp reduction of irrigated areas, etc.</p> <p>A trend of decreasing population living in rural areas has been observed in the country, as well as differences in the level of population decline by region. The level of internal migration and emigration is high. The main reason for migration from rural areas is generally unemployment and poverty. In addition, the regions (counties) of the country differ in population density, the size of settlements, and the types of urban and rural settlements.</p> <p>Local economic development, as a complex process, should be integrated with all directions of territorial development in order to balance economic, ecological and social priorities. This implies the agreement of the interests of the subjects existing in the territory. In this case, it will be more possible to implement strategic (action) plans, programs, projects, balance economic development processes and ensure the interaction of technological systems. This will prepare conditions conducive to the sustainable development of the territory.</p> <p>The paper substantiates the necessity of transitioning the development of the municipality (as a territory) to indicative planning, so that when planning the sustainable development of the territory, not only orientations are determined, but also methods to achieve the set goal. The advantage of indicative planning is that planning starts "from the bottom up", is based on the principle of consultations and agreements, and takes into account the interests of different layers of society (regardless of the form of ownership), while also performing the function of providing information to the public.</p> <p>The conclusions and recommendations presented in the article will contribute to the preparation and further improvement of the theoretical and methodological foundations of sustainable development of rural areas</p> Nodar Chitanava Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 7 23 10.52340/bal/2024.02.01 Factors determining the state of audit quality in small audit firms https://ojs.b-k.ge/index.php/bk/article/view/911 <p>The paper presents the problems in the practice of quality control in small audit firms and the prospects for overcoming the challenges related to the formation of the system - the factors affecting the functioning of the quality control system are identified and analyzed; based on their analysis, opinions are expressed about the possible exclusion of small audit firms from the market and the retention of auditors employed in them; recommendations are given, the consideration of which will contribute to the provision of high-quality services by the audit firm.</p> Iuri Papaskua Ana Osikmishvili Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 24 27 10.52340/bal/2024.02.02 ENVIRONMENTAL AUDIT: WORLD EXPERIENCE AND PRACTICE IN UZBEKISTAN https://ojs.b-k.ge/index.php/bk/article/view/913 <p>The article examines the methodological problems of environmental audit, its role in eliminating the consequences of global environmental violations, as well as the conservation and rational use of natural resources in the Republic of Uzbekistan. Particular attention is paid to international experience and practice of introducing environmental audit in various countries.</p> Minovar Tulakhodjaeva Mutabar Khodjaeva Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 28 31 10.52340/bal/2024.02.03 Stability of the political system is the guarantee of building modern Georgian statehood https://ojs.b-k.ge/index.php/bk/article/view/915 <p>The modern Georgian political system is in the process of democratic transition, which is characterized by its rational and irrational features. The structural-functional features of the political system determine its stability. The priorities of building Georgian statehood are determined by the democratic stability of the political system. The irrational process of the political system is its institutional instability, which causes constant polarization. The modern political system is highly polarized, which poses a threat to the construction of statehood; the political opposition, which does not take into account political reality and national pragmatism, is especially destructive; its actions hinder the state-building process and lead the country to civil conflict. The need to achieve a universal political consensus has come to the fore. The 2024 parliamentary elections ended with the victory of the Georgian Dream, which must be recognized by the political opposition. Parliamentary cooperation provides guarantees for the stability of the political system. The future of Georgian statehood and the protection of its sovereignty lies only in European integration, which is constitutionally defined. When determining foreign policy priorities, it is necessary to take into account modern geopolitical transitions. The most important goal is to form the Georgian nation into a political nation, which should create the foundations of a unified state and civil identity. The formation of national identity and its political transition are priorities of modern political socialization. The political system cannot meet the requirements of the time and requires cultural-ideological and intellectual transformation. Significant attention should be paid to raising the level of education of youth, which should be built on national identity. Pseudoliberal approaches should be eliminated in the education system. The stability of the political system requires the consolidation and activity of all political actors. The role of the Georgian Orthodox Church in determining state-building priorities and in the stability of the political space is important.</p> Guram Abesadze Nodar Abesadze Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 32 37 10.52340/bal/2024.02.04 The impact of digital transformation on the labor market https://ojs.b-k.ge/index.php/bk/article/view/917 <p>This article examines the labor market changes driven by digital transformation, highlighting how the ability to adapt to digitalization is becoming a critical competitive advantage. Companies that successfully navigate this transformation can not only enhance their efficiency and productivity but also unlock new business opportunities and strengthen their market position. The article discusses perspectives on the anticipated economic effects of digital transformation. Scientific findings do not support the notion of technological change leading to a negative overall employment impact or widespread technological unemployment. The importance of digital transformation lies in its capacity to future-proof companies and enable them to respond flexibly to ever-changing market demands.</p> Nona Gelitashvili Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 38 41 10.52340/bal/2024.02.05 Credit risk management in commercial banks https://ojs.b-k.ge/index.php/bk/article/view/921 <p>It is important to employ contemporary system and main procedures of credit risk management at the commercial banks, as well to carry out risk control during the lending activities and analysis of typical problems the solution of which is of necessity with the view of implementation of the cotemporary systems of credit risk management.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The lending transactions constitute the basis of the banking business activities inasmuch as they are the main source of income for a commercial bank in particular. However these transactions are associated with certain credit risks more or less influencing every bank during the lending process. The main objective of a bank is to find the golden mean i. e. to reach an optimum ratio between the lending transaction yield and the risk quality, which is feasible to accomplish via risk reasonable management.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The main controls of the credit risk management are as follows: credit portfolio diversification, analysis of creditworthiness and financial standing of borrowers, lending personnel qualification, credit structuring, credit rationing, creation of reserves for paying off probable losses from loans, etc. Assessment of creditworthiness of the customers is the most widely used method of decreasing the credit risks in the banking practice.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp; Practical research of the credit transactions of the commercial banks of market-economy countries and generalization of their national experiences makes possible to consider suitable credit risk assessment methodology that includes all the stages of the lending process. Studying the reasons of occurrence of a credit risk showed that those of personal and administrational nature gain more importance in such same occurrence.</p> <p>&nbsp;&nbsp; In the current context, strengthening of control to the banking sector by appropriate supervision agencies becomes more important with the view of improvement of credit risk management at the banks. A sound employment of suitable facilities of inspection of the commercial banks on site is of special significance. In terms of high economic risks the winner is who would be able to precisely forecast, asses and timely minimize the risks.</p> Besarion Nakopia Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 42 47 10.52340/bal/2024.02.06 An economic model that destroys and destroys countries https://ojs.b-k.ge/index.php/bk/article/view/919 <p>In the work, the interested reader will find answers to the questions: What causes economic problems? Why is the whole world in a constant economic crisis? What determines constant economic problems? Where is the solution? It discusses a review of the most important economic studies conducted by the author in recent times. All economic problems are investigated and solved, the causes of economic problems and crises are explained in detail. Ways to eliminate existing causes are also explained. Opportunities for overcoming economic problems and crises.</p> <p>The author emphasizes that the main cause of economic problems and crises is the existing economic model: “free self-regulating market economy” and its radical form “monetary model of economic development” and gross errors in economic theories and formulas, a convincing analysis is provided, showing specific examples. It has been proven and thoroughly explained that the free market cannot regulate the processes taking place in the economy, and it has also been proven that the existing economic models cannot regulate economic processes. These models create serious economic problems and economic crises.</p> <p>Along with a deep analysis of the problems and conclusions, the work presents the author's opinions on a way out of the situation.</p> Nasida Darbuashvili Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 48 60 10.52340/bal/2024.02.07 Evaluation of the Factoral Structure of the Problematic Social Media Use Scale Among Georgian Youth https://ojs.b-k.ge/index.php/bk/article/view/923 <p>The development of digital technologies has brought a lot of benefits to humanity, but many studies conducted over the last three decades have revealed that their excessive, uncontrolled use leads to a number of negative consequences - distress, psychopathological symptoms, health problems, social, professional or academic disorders, etc. Sh. Moreover, some individuals may develop behavioral addiction-like symptoms. A meta-analysis conducted in 2022, which included more than two million people living in 64 countries, showed that 17.4% of the world's population is addicted to social networks. Consequently, Georgian psychologists need a reliable measuring tool to assess this problem. The purpose of the study was to check the factor structure and psychometric indicators of the already adapted Georgian version of Caplan's Problematic Use Scale (GPIUS2). 1013 participants were included in the study, including 77% women, average age 22.6±6.3. The factorial structure was tested by both exploratory (EFA) and confirmatory factor analysis (CFA). Structural equation (SEM) modeling and mediation analysis were used to test the theoretical model. The conducted study confirmed the high reliability and validity of the Georgian version of the scale. The Georgian version of the Problematic Social Media use scale can be considered a reliable and valid psychodiagnostic tool. It can be used among young people for both research and psychological counseling purposes - to assess the risk of problematic consumption. The main results of the study are important for both client work and prevention purposes. It can be said that the key risk factor for the development of problematic consumption among Georgian youth is consumption for mood regulation, that is, it is the basis of the preference for online communication and insufficient self-regulation of the use of social networks. Therefore, use for mood regulation can be considered as a potential target for psychological intervention – both for psychological support and prevention.</p> Ana Zubashvili Tamar Abashidze Irina Zhvania Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 61 73 10.52340/bal/2024.02.08 Innovations in medicine and their future economic effectiveness https://ojs.b-k.ge/index.php/bk/article/view/927 <p>The article reviews the importance of a new branch of science - nanotechnologies for the economic growth of the country and the well-being of the population. Relevant recommendations are given, the consideration of which will accelerate the further development of the country. The discussed issues will play an even more important role in the economic progress of developing countries. The sooner one of the leading industries of our century can be developed in Georgia, the sooner we will be able to gain economic independence. This will speed up the development of the country and increase the standard of living of the population.</p> Leonardo Khvedelidze Boris Chichinadze Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 74 78 10.52340/bal/2024.02.09 Artificial Intelligence (AI) in Human Resource Management (HRM) processes https://ojs.b-k.ge/index.php/bk/article/view/931 <p>Against the background of ongoing reforms in the public sector, there are significant changes, among which digitalization of human resources management processes is of particular importance. In the paper, we discuss the possibilities of digital technologies and artificial intelligence in human resource management processes, the use of which makes human resource management practices much more effective and increases the success rate of organizations. The issue is relevant because in this direction we have significant challenges in the Georgian reality, the scientific research and solution of which are of the utmost importance.</p> Keso Sumbadze Nino Tavberidze Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 79 83 10.52340/bal/2024.02.10 Empowering Adolescents: Professional Orientation and Career Counseling for High School Students https://ojs.b-k.ge/index.php/bk/article/view/933 <p>In the modern world, the importance of choosing a profession and planning a career is increasing day by day. The dynamics of the labor market, technological developments, and the ever-changing global economy have made it necessary for individuals to actively participate in shaping their own professional and career paths. In the 21st century, career management has become vital in coping with the challenges of the modern work environment, so the issue of career orientation becomes especially relevant in high school, which plays a crucial role in shaping the future career trajectories of students, helping to reduce the gap between the aspirations of adolescents and the realities of the labor market, while also supporting the making of professional choices based on students' interests, skills, and values.</p> <p>This article discusses the role, importance, and format of career management at the high school level, focusing on a review of current research in this area, analyzing the different strategies used in career counselling, and highlighting the benefits of career guidance at the high school and the challenges in career planning. The article draws on the scholarly work of several authors, comparing their perspectives and conclusions to provide an overview of important aspects of career development and allowed us to create a vision for the issue in the context of Georgia.</p> Tamar Kacharava Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 84 88 10.52340/bal/2024.02.11 Effects of Social Media Use on Psychological Well-Being https://ojs.b-k.ge/index.php/bk/article/view/936 <p>The rapid proliferation of social media has raised concerns regarding its impact on psychological well-being. While social media platforms provide opportunities for connection, information sharing, and self-expression, they have also been linked to various mental health issues. This abstract explores the effects of social media use on psychological well-being, focusing on both positive and negative outcomes. On the positive side, social media can enhance feelings of social support, foster a sense of belonging, and provide platforms for individuals to share experiences, particularly for marginalized groups. However, extensive use of social media has been associated with negative effects, including increased anxiety, depression, and feelings of loneliness. These outcomes are often attributed to the constant comparison to idealized images, cyberbullying, and the pressure to maintain an idealized online persona. Furthermore, the addictive nature of social media can lead to decreased face-to-face social interactions, disrupting real-life relationships and further harming emotional health. This paper highlights the complex relationship between social media use and psychological well-being, emphasizing the need for balanced engagement and mindful use of these platforms. The study concludes with recommendations for promoting healthier social media habits, such as time management and fostering offline connections, to mitigate its detrimental psychological effects.</p> Beka Skhirtladze Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 89 93 10.52340/bal/2024.02.12 Econometric Analysis of Apartments for Rent in Tbilisi https://ojs.b-k.ge/index.php/bk/article/view/938 <p>The housing sector is one of the most important parts of the country's economy, so a comprehensive analysis of the real estate market is necessary for the implementation of the relevant policy and the effective distribution of resources. The purpose of the paper is to use regression analysis methods to identify how the various characteristics of the apartment affect the rental price in Tbilisi. The use of an econometric approach in the study of rental prices for residential apartments is important not only from a practical but also theoretical point of view. The study uses both quantitative and qualitative variables. As a result of the study, it was revealed that the rental prices of the apartment are significantly affected by the overall area of the apartment and the proximity to the metro. This study will be useful for users who are trying to select the optimal apartments. The results of the study will also be of interest to developers and policymakers.</p> Natia Gogatishvili Ilia Soselia Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 94 97 10.52340/bal/2024.02.13 Political environment and its consequences for the Georgian economy https://ojs.b-k.ge/index.php/bk/article/view/942 <p>The paper presents an assessment of Georgia's political environment and its impact on the economic situation.</p> <p>The author develops the idea that the current political environment determines Georgia's economic development, however, the lack of stability and reasonable reforms increases the risk of the country's economic problems. To ensure the country's economic sustainability and the well-being of the population, stable, transparent and effective political governance is needed, which will help attract investments, accelerate economic growth and reduce poverty.</p> Nani Despotashvili Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 98 101 10.52340/bal/2024.02.14 For the history of the formation of law enforcement agencies in the Democratic Republic of Georgia https://ojs.b-k.ge/index.php/bk/article/view/945 <p>The article describes the difficult criminological past of the Democratic Republic of Georgia, the actual circumstances of the fight against the criminal world at the beginning of the 20th century. Attention is drawn to the difficulties of the process of forming law enforcement agencies of the Democratic Republic of Georgia.</p> Tornike Bichiashvili Alexander Egetashvili Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 102 104 10.52340/bal/2024.02.15 CHRONICLES OF UNFORGETTABLE DAYS https://ojs.b-k.ge/index.php/bk/article/view/949 <p>In the period leading up to the publication of the second issue of this year’s magazine, two<br>events of particular importance for the auditing profession were held. The first, on September<br>16-17, 2024 in Baku, on the occasion of the 30th anniversary of the signing of the Law of the<br>Republic of Azerbaijan “On the Audit Service”, the Chamber of Auditors held an international<br>scientific and practical conference on the topic: “Accountability and Transparency - the Foundation<br>of a Green Economy”. The second, on December 9-10 in Tashkent, on the occasion of<br>the Day of Accountants and Auditors of Uzbekistan, the National Association of Accountants<br>and Auditors of Uzbekistan and the Chamber of Auditors of Uzbekistan held an international<br>scientific and practical conference on the topic: “Accounting and Auditing - Current Status and<br>Development Prospects”.<br>With the joint efforts of the organizers and participants, these two forums became a celebration<br>of sharing experiences for the advancement of the profession, long-awaited meetings of<br>colleagues and friendship. During the conference and after the conference, the introductory<br>and cultural part left indelible impressions on each participant.<br>This is clearly demonstrated by the press release prepared for the conferences, which we<br>invariably offer to the readers of the magazine:</p> Iuri Papaskua Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 105 117 ATTENTION JOURNAL READERS AND POTENTIAL AUTHORS! https://ojs.b-k.ge/index.php/bk/article/view/951 <p>We think it is interesting for you to inform that the journal “Business and Legislation” has been published since De­cember 2020 with an international scientific-analytical status and is indexed in the international search database <strong>Google Scholar</strong>, as well as in several other databases (see the main page of the site at ojs.b-k.ge).</p> <p>Over the years, the journal has been a reliable partner for business circles, an experienced guide in the field of business, a kind guide in the labyrinths of legislative acts, a selfless servant for the academic field and will continue this tradition.</p> <p>The journal is open to all interested parties. It is possible to publish articles in Georgian, English, German and Russian languages on topical issues of business administration and management, economic and social policy. Reviews of published monographs and manuals, as well as comments, clarifications, notes and recommendations for improvement on legislative acts are accepted.</p> Iuri Papaskua Copyright (c) 2024 Business and Legislation https://creativecommons.org/licenses/by-nc-nd/4.0 2024-12-27 2024-12-27 17 2 118 119